Texas Attorney General Ken Paxton has filed a lawsuit against General Motors, accusing the automaker of illegally collecting and selling drivers’ data to insurance companies without their consent or knowledge. This marks the first lawsuit against a car manufacturer following an investigation launched by the attorney general’s office in June into several automakers for similar practices.
According to the lawsuit, GM allegedly used technology in vehicles from 2015 and later to collect, record, analyze, and transmit detailed driving data each time a driver used their vehicle. Multiple companies reportedly bought the data, including at least two that generated “Driving Scores” based on the information. These companies then sold the scores to insurance firms, which could use the data to assess how often drivers exceeded speed limits or complied with traffic laws.. While some insurers offer customers the option to participate in such programs in exchange for potential discounts voluntarily, the lawsuit claims that GM misled its customers by not fully disclosing the extent of data collection and its sale.
The attorney general’s office alleges that GM “deceived” Texan customers, particularly those who enrolled in programs like OnStar Smart Driver, by failing to inform them of the true nature of the data collection. The lawsuit asserts that customers unknowingly agreed to collect and sell their driving data through convoluted and unclear disclosures.
GM responded to the lawsuit by stating that they have been in discussions with the attorney general’s office and are reviewing the complaint. The company expressed a shared interest in protecting consumer privacy.
This legal action comes as states increasingly step in to regulate data privacy amid the absence of a comprehensive federal data privacy law. The aim is to protect consumers from the growing data brokerage industry.
